North Carolina Down Payment Support Systems

Payments Gateway - The North Carolina Housing Finance Agency got two amazing programs for First Time Home Buyers. These systems would be the Mortgage Credit Certificate and the Down Payment Assistance Program.

You also purchase a home between January 1, 2009 and December 1, 2009 and if you qualify for one of these programs, you could also qualify for the $8,000 tax credit only enacted into law in the Federal Economic Stimulus Plan.

First, who's a First Time Home Buyer? A first-time Home Buyer is someone who has not owned a house in the past three years. It is the same qualifying definition for the $8,000 tax credit.

A Mortgage Credit Certificate (MCC) is a federal tax credit to help home buyers with moderate and low incomes. All home owners can claim an itemized deduction.

In case you are eligible for the MCC, you can claim 20% of the interest you pay on your mortgage as a credit in your federal income taxes. You can save as much as $2,000 on your taxes.

You will find a way to unite this if you do qualify for the MCC, for 2009. This may reduce a purchaser's tax liability .

Who Qualifies for an MCC?

Who qualifies for an MCC is based in your income as well as the price of the property you are purchasing. Household income means the “gross income of the mortgagor and any individual anticipated to live in the residence who is 18 years of age or older.”

House price limitations that apply in Durham, Orange and Chatham Counties and the income are listed below.

MCC Income Limitations 1 Man $61,500 2 Persons $61,500 3 Men $70,500 4 Persons $70,500

MCC Sales Price Limits New House $220,000 Existing Dwelling $210,000

Home buyers that want help with their deposit and closing prices may be able to get down payment assistance - or, to put it differently, interest-free, deferred second mortgages up to $8,000. The purchaser only has to pay and the load would pay around .

This program has more rigorous income limitations than the MCC plan outlined above. Like the MCC application, it can be utilized along with the new $8,000 tax credit on house purchases between December 1, 2009 and January 1, 2009. The deposit assistance, nevertheless, can't be applied together with all the MCC. That is an either or scenario.

The income and house price limitations that apply in Durham Orange and Chatham Counties are given below.

Down Payment Assistance Income Limitations

1 Man $39,950 2 Individuals $45,650 3 Persons $51,350 4 Men $57,050

Down Payment Support Sales Price Limits New Dwelling $210,000 Existing House $210,000